READ ABOUT DETROIT AND SOLUTIONS TO ITS PROBLEMS. CLICK HERE.

Wednesday, September 17, 2008

No-Energy Energy Bill

SEARCH BLOG: ENERGY

From the Boston Globe:

The US House approved an energy bill last night that would allow offshore drilling as close as 50 miles from the Atlantic and Pacific coasts, but a last-minute provision added at the insistence of Massachusetts members would prohibit oil and gas drilling around Georges Bank, saving New England's premier commercial fishing grounds from potential harm.

The legislation also promotes investments in renewable energy and energy efficiency, paid for by eliminating tax exemptions for oil companies and increasing their royalty payments, and it authorizes more funding for heating assistance for low-income people.

The House voted 236 to 189 for the package.

The Democratic majority's support for expanded ocean drilling reflects mounting political pressure from an electorate deeply concerned about the distressed economy and high gasoline prices. Democratic leaders had previously criticized Republican proposals to end a longtime ban on offshore drilling, saying new wells would take years to produce oil and gas and thus have no immediate impact on prices. But with the ban set to expire at the end of this month and the November elections approaching, House Speaker Nancy Pelosi shifted her stance, proposing legislation that would allow drilling as close as 100 miles from shore, and with a state's permission, as close as 50 miles from shore.

"My colleagues have told me to tell you that it's time for an oil change in America, and this bill represents that," Pelosi said in a news conference yes terday.

From Ohio Rep. John Boehner's email:

Boehner: No-Energy Energy Bill "Won't Do a Damn Thing About American Energy"

Last night around 10 pm, we were presented with a more than 200-page bill that we are expected to vote on today that proposes to solve America's energy crisis. House Republicans have spent the last three months discussing the need for a comprehensive energy strategy to open our natural resources, increase our investment in alternative and renewable fuels, and create American energy independence.

Last night, the Rules Committee – also known as “The Speaker’s Committee” – refused to give House Republicans equal time during today’s debate on the latest energy legislation brought to the Floor. Instead of letting lawmakers vote on the American Energy Act, which House Republicans introduced more than two months ago, Democratic leaders are bringing their bill to the Floor under a process that does not a single lawmaker offer a single amendment to the bill.


What’s more, this bill is being debated and is expected to be voted on while several lawmakers from Texas remain at home helping with recovery efforts after Hurricane Ike.

Written behind closed doors with special interest allies who are on the record supporting higher gas prices and released to the public in the dark of night, this latest bill is just another hoax on the American people who expect – and deserve – better.

This bill permanently locks away 88 percent of the best American oil resources contained in deep-ocean waters. It blocks valuable and job-creating energy production in remote areas of Alaska and in the Rocky Mountains. And it stops efforts to produce more and cheaper energy through emissions-free nuclear and coal-to-liquids technology.

Rather than the “all of the above” approach supported by the American people, this bill is nearly a “none of the above.” It will do nothing to help lower gas prices and create American energy independence.

When is more less? When Nancy gives it.

..

Can"t Find It?

Use the SEARCH BLOG feature at the upper left. For example, try "Global Warming".

You can also use the "LABELS" below or at the end of each post to find related posts.

Blog Archive

Cost of Gasoline - Enter Your Zipcode or Click on Map

CO2 Cap and Trade

There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
It was beautiful and simple, as truly great swindles are.
- O. Henry
... The Government is on course for an embarrassing showdown with the European Union, business groups and environmental charities after refusing to guarantee that billions of pounds of revenue it stands to earn from carbon-permit trading will be spent on combating climate change.
The Independent (UK)

Tracking Interest Rates

Tracking Interest Rates

FEDERAL RESERVE & HOUSING

SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
November 28, 2007 FED VICE CHAIRMAN DONALD KOHN
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."
http://www.reuters.com/

December 11, 2007 Somehow the Fed misses the obvious.
fed_rate_moves_425_small.gif
[Image from: CNNMoney.com]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's Economy.com. "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

My photo
Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)